What Wall Street Thinks Of Cisco's Q4 Earnings

Cisco Systems, Inc. CSCO stock traded higher by 3.9 percent Thursday after the company topped market expectations in the fourth quarter.

Several Wall Street analysts weighed in on Cisco stock following the earnings report. Here’s a rundown of what they had to say.

Under-The-Radar Growth

JMP analyst Erik Suppiger said Cisco’s 5 percent organic revenue growth and 6 percent organic order growth are the best growth numbers the company has put up in years.

“Security sales sustained double-digit growth for the second consecutive quarter, which we believe suggests cyber security demand is relatively healthy,” Suppiger wrote.

Citi analyst Jim Suva said Wall Street seems to be missing out on Cisco.

“We believe consensus is underestimating the strength of the enterprise market (employment trends and corporate spending is strong) coupled with Cisco’s newer products, services & security that is driving growth for this often considered mature and lacking-growth company,” Suva wrote.

Making The Most Of The Macro

Raymond James analyst Simon Leopold said Cisco is demonstrating good execution in a healthy macro environment.

“We see the performance as reflective of good execution, including the evolution to a more software centric business and new product cycles, and a healthy macro,” Leopold said.

Jefferies analyst George Notter said earnings, guidance and Cisco’s business narrative were all bullish for the stock.

“We continue to like the risk/reward as we believe there’s an improving argument for valuations to re-rate higher,” Notter wrote.

Ratings And Price Targets

• JMP has a Market Perform rating.
• Citi has a Buy rating and $52 target.
• Raymond James has an Outperform rating and $50 target.
• Jefferies has a Buy rating and $50 target.

The stock traded around $45.30 at time of publication.

Related Links:

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A Michigan Startup Milestone: Cybersecurity Firm Duo Tops $1 Billion In Market Value

Photo courtesy of Cisco.